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B3 S.A. - Brasil, Bolsa, Balcão (in English, ''B3 - Brazil Stock Exchange and Over-the-Counter Market''), formerly BM&FBOVESPA, is a
stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
located in
São Paulo São Paulo (, ; Portuguese for 'Saint Paul') is the most populous city in Brazil, and is the capital of the state of São Paulo, the most populous and wealthiest Brazilian state, located in the country's Southeast Region. Listed by the GaWC a ...
,
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
, and the second oldest of the country. Its current form can be traced back to May 8, 2008, when the São Paulo Stock Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F) merged, creating BM&FBOVESPA. On March 30, 2017, BM&FBOVESPA merged with CETIP, creating ''B3.'' The benchmark indicator of B3 is the
Índice Bovespa The Bovespa Index ( pt, Índice Bovespa), best known as Ibovespa is the benchmark index of about 92 stocks traded on the B3 (Brasil Bolsa Balcão), accounting for the majority of trading and market capitalization in the Brazilian stock market. It ...
, more commonly known as ''Ibovespa''. There were 418 companies traded at Bovespa as of March 2021. On June 7, 2021, the Ibovespa index reached its record market closing above 130,776 points. B3 also has offices in
Rio de Janeiro Rio de Janeiro ( , , ; literally 'River of January'), or simply Rio, is the capital of the state of the same name, Brazil's third-most populous state, and the second-most populous city in Brazil, after São Paulo. Listed by the GaWC as a b ...
,
Shanghai Shanghai (; , , Standard Mandarin pronunciation: ) is one of the four direct-administered municipalities of the People's Republic of China (PRC). The city is located on the southern estuary of the Yangtze River, with the Huangpu River flow ...
, and
London London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a majo ...
.


History

Founded on August 23, 1890 by Emilio Rangel Pestana, the "Bolsa de Valores de São Paulo" (São Paulo Stock Exchange, in English) has had a long history of services provided to the stock market and the Brazilian economy. Until the mid-1960s, Bovespa and the other Brazilian stock markets were state-owned companies, tied with the Secretary of Finances of the states they belonged to, and brokers were appointed by the government. After the reforms of the national financial system and the stock market implemented in 1965/1966, Brazilian stock markets assumed a more institutional role. In 2007, the Exchange demutualized and became a for-profit company. Through self-regulation, Bovespa operates under the supervision of the Comissão de Valores Mobiliários (CVM), analogous to the American SEC. Since the 1960s, it has constantly evolved with the help of
technology Technology is the application of knowledge to reach practical goals in a specifiable and reproducible way. The word ''technology'' may also mean the product of such an endeavor. The use of technology is widely prevalent in medicine, science, ...
such as the introduction of computer-based systems, mobile phones and the internet. In 1972, Bovespa was the first Brazilian stock market to implement an automated system for the dissemination of information online and in real-time, through an ample network of computer terminals. At the end of the 1970s, Bovespa also introduced a
telephone A telephone is a telecommunications device that permits two or more users to conduct a conversation when they are too far apart to be easily heard directly. A telephone converts sound, typically and most efficiently the human voice, into e ...
trading system in
Brazil Brazil ( pt, Brasil; ), officially the Federative Republic of Brazil (Portuguese: ), is the largest country in both South America and Latin America. At and with over 217 million people, Brazil is the world's fifth-largest country by area ...
; the "Sistema Privado de Operações por Telefone" or "SPOT" (Private System of Telephone Trading, in English). At the same time, Bovespa developed a system of fungible safekeeping and online services for brokerage firms. In 1990, the negotiations through the ''Sistema de Negociação Electrônica'' - CATS (Computer Assisted Trading System) was simultaneously operated with the traditional system of "Pregão Viva Voz" (
open outcry Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell order ...
). Currently, BM&FBOVESPA is a fully electronic exchange. In 1997, a new system o
electronic trading
known as the Mega Bolsa, was implemented successfully. The Mega Bolsa extends the potential volume of processing of information and allows the Exchange to increase its overall volume of activities. With the goal to increase popular access to the stock markets, Bovespa introduced in 1999 the "Home Broker", an internet-based trading systems that allows individual investors to trade stocks. The system enables users to execute buy and sell orders online. In 2000, Bovespa created three new listing segments, the Novo Mercado (New Market), Level 2 and Level 1 of Corporate Governance Standards, allowing companies to accede voluntarily to more demanding disclosure, governance and compliance obligations. The new listing segments mostly languished until 2004, when a growing number of newly public companies began to list on the Novo Mercado and other segments as part of a capital-raising effort. From 2004 to 2010, the vast majority of new listings on the Bovespa were made by Novo Mercado, Level 2 and Level 1 companies. The Novo Mercado, Level 2 and Level 1 segments are based on a contractual agreement of the listed company, its controlling shareholder, and its management to comply with specified regulations. In addition, listed companies must submit to arbitration as a method of resolving disputes. The set of protections entailed by a Novo Mercado listing is apparently deemed by market participants to increase the attractiveness of companies. The stock market index of Novo Mercado listed companies (the IGC) has consistently outperformed the broader Ibovespa index since its launch. The recent success of the Brazilian equity capital markets is attributed to a significant extent to the credibility engendered by the Novo Mercado regulations. In 2007, only the United States and China equity markets had a greater number of initial public offerings. The availability of a "market exit" has also encouraged the development of a private equity industry, a growing Brazilian investment banking market and a thriving asset management industry. Another side benefit of a thriving equity market has been access to equity financing for the international expansion of Brazilian business. Brazilian multinational companies have used the proceeds of equity offerings to fund a growing number of international acquisitions. Vale, Embraer, Gerdau, Brazil Foods, Marfrig Alimentos and JBS have acquired businesses outside Brazil using the proceeds from equity offerings. Attractive valuations of Brazilian subsidiaries have led international companies to list their Brazilian subsidiaries, as was the case of Banco Santander Brasil. On May 8, 2008, Bovespa Holding announced the merger of the São Paulo Stock Exchange (Bovespa) and the Brazilian Mercantile and Futures Exchange (BM&F), creating the world's second largest stock exchange. As a result of an early 2008 stock swap, Chicago's
CME Group CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset class ...
owns a 5% stake in BM&FBovespa, and in turn, BM&FBovespa owns a 5% stake in CME Group. The agreement has also created an order routing trading system between both exchanges. On June 18, 2012, BM&FBovespa became a founding member of the United Nations
Sustainable Stock Exchanges initiative The Sustainable Stock Exchanges (SSE) initiative promoting corporate investment in sustainable development. It is a project of the United Nations (UN) co-organized by the United Nations Conference on Trade and Development (UNCTAD), the United N ...
on the eve of the United Nations Conference on Sustainable Development (Rio+20). On June 16, 2017, the Securities and Exchange Commission of Brazil has approved the change to the corporate name of BM&FBOVESPA S.A. – Bolsa de Valores, Mercadorias e Futuros to B3 S.A. – Brasil, Bolsa, Balcão, which must be used in all formal communications and references to the Company. The merger of Cetip S.A. – Mercados Organizados into B3 S.A. – Brasil, Bolsa, Balcão was approved both at the Extraordinary Shareholders Meeting held on June 14, 2017 and by CVM, and that the action shall occur on July 3, 2017.


Hours

The exchange has a pre-market session from 09:45am to 10:00am, a normal trading session from 10:00am to 5:30pm and a post-market session from 6:00pm to 7:30pm weekdays and holidays declared by the Exchange in advance.


Tickers and trade names

In the cash market, tickers are composed by four letters, a number, and a suffix in some cases. The letters stand for the listed company and the number disclosed the equity type, as follows: 11 and onward, codes may represent many situations, most commonly
units Unit may refer to: Arts and entertainment * UNIT, a fictional military organization in the science fiction television series ''Doctor Who'' * Unit of action, a discrete piece of action (or beat) in a theatrical presentation Music * ''Unit'' (alb ...
(UNT, a certificate meshing different equities together. For instance, SULA11 is a unit comprising one
common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Com ...
and two preferred stocks issued by Sul América S.A.),
exchange-traded fund An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold from other owners throughout the ...
s, real estate investment funds (known as FII,
REIT A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping ce ...
in English) and Brazilian Depositary Receipts (BDRs). Nevertheless, they may state other conditions, as
debenture In corporate finance, a debenture is a medium- to long-term debt instrument used by large companies to borrow money, at a fixed rate of interest. The legal term "debenture" originally referred to a document that either creates a debt or acknowl ...
subscription rights, special situations, and so on. It is important to note that "classified"
preferred stock Preferred stock (also called preferred shares, preference shares, or simply preferreds) is a component of share capital that may have any combination of features not possessed by common stock, including properties of both an equity and a debt ins ...
s (A, B, C, D and furthermore) do not have an implicit meaning, i.e., each issuer may attribute different rights and restrictions for a given class. This means it is mandatory to learn individually their characteristics as they are not directly comparable among companies. The suffix B after the ticker means the equity is traded at the
over-the-counter Over-the-counter (OTC) drugs are medicines sold directly to a consumer without a requirement for a prescription from a healthcare professional, as opposed to prescription drugs, which may be supplied only to consumers possessing a valid prescr ...
(OTC) market. Here are some examples: *VALE5 =
Vale A vale is a type of valley. Vale may also refer to: Places Georgia * Vale, Georgia, a town in the Samtskhe-Javakheti region Norway * Våle, a historic municipality Portugal * Vale (Santa Maria da Feira), a former civil parish in the municipali ...
PNA shares *CSNA3 =
Companhia Siderúrgica Nacional Companhia Siderúrgica Nacional (CSN) is the largest fully integrated steel producer in Brazil and one of the largest in Latin America in terms of crude steel production.
common shares *CTNM4 = Companhia de Tecidos Norte de Minas - Coteminas preferred shares *ABCB2 = Banco ABC Brasil preferred shares subscription rights *ETER9 = Eternit S.A. ordinary shares receipts *SANB11 = Banco Santander Brasil units *FAMB11B = Fundo de Investimento Imobiliário Ed. Almirante Barroso, OTC *MILA11 =
iShares iShares is a collection of exchange-traded funds (ETFs) managed by BlackRock, which acquired the brand and business from Barclays in 2009. The first iShares ETFs were known as World Equity Benchmark Shares (WEBS) but have since been rebranded ...
MidLarge Cap ETF *AVON11B =
Avon Products, Inc. Avon Products, Inc. or simply known as Avon, is an American-British multinational corporation, multinational cosmetics, skin care, fragrance and personal care company, based in London. It sells directly to the public. Avon had annual sales of $9. ...
BDRs, OTC Ex rights conditions are indicated in the equity trade name as a suffix composed by the letter E (for ex condition) and a letter or a combination of letters depending on the corporate actions involved: Trade names may carry another symbols depending on their corporate governance. BM&FBOVESPA has four distinctive listing segments for companies that agree to undertake voluntary corporate rules on each segment: Equities' trade names are composed by the issuer's name, brand name or abbreviation (as it is limited to 12 characters), equity type, corporate governance level when pertinent and ex rights indication when appropriate. Here are some examples (please note some equities listed here, such as subscription rights, do not exist anymore due to its own finite nature. The same apply to ex rights indication by the same reason):


Indices

BOVESPA calculates and discloses several indices:Indices
Equity Indexes at BM&F Bovespa webpage


Broad indices

*IBOVESPA: Total return index comprising the most representative companies in the market, both by market cap and traded volume. It is the benchmark index of São Paulo Stock Exchange. It is the oldest BOVESPA index, and it is being broadcast since 1968. *IBRX 50: Also called Brasil 50, it comprises the 50 most traded equities at BOVESPA. *IBRX: It has the same purpose of IBRX 50, but embracing the 100 most traded equities. *IBRA: Brazil Broad-Based Index, it comprises a wider range of companies, aiming to embrace 99% of all companies already selected for any other exchange indices. Its main goal is to represent the most relevant companies in the stock exchange. *MLCX: The Midlarge Cap Index shows the performance of the most relevant companies at the exchange, responding for at least 85% its total market value. *SMLL: The Small Cap Index comprises relevant companies who don't apply for the MLCX listing, i.e., heavily traded companies which does not fill the 85% market share criteria. *IVBX: It was conceived as an index to trail the 2nd tier companies, defined as those which trading ranking is from 11th and beneath, therefore not to be classified as blue chips. Nevertheless, most of its members are highly relevant companies, needing to comply with high traded volume and market capitalization. *IDIV: The Dividend Yield index, it comprises companies which show the highest dividend yields values in the market, along with a strong trading session participation.


Sector indices

*IEE: Electric Power Index *INDX: Industrial Index *ICON: Consumption Index *IMOB: Real estate Index *IFNC: Financial Index (comprising banks, credit card processors, insurance companies, etc.) *IMAT: Basic Materials Index (representing raw materials, pulp & paper, packaging, steel, etc.) *UTIL: Public Utilities Index (electric power, water & sewage, gas, etc.)


Corporate governance indices

*IGC: Corporate Governance Index comprises all companies listed in any of the distinctive governance levels, irrespectively of its market cap. *IGCT: Corporate Governance Trade index filters the IGC components by trading liquidity. *IGNM: The New Market Index congregates all listed companies in the New Market portion of the BOVESPA. *ITAG: The Tag Along Index is composed of equities that offer to his bearer privileged tag along rights compared to those granted by Brazilian law and a minimum trading volume.


Sustainability indices

*ICO2: Efficient Carbon Index is granted to companies who complies with efficient efforts to control
greenhouse gas emissions Greenhouse gas emissions from human activities strengthen the greenhouse effect, contributing to climate change. Most is carbon dioxide from burning fossil fuels: coal, oil, and natural gas. The largest emitters include coal in China and lar ...
and are eligible for IBRX 50. *ISE: Corporate Sustaintability Index is comparable to the
Dow Jones Sustainability Index The Dow Jones Sustainability Indices (DJSI) launched in 1999, are a family of indices evaluating the sustainability performance of thousands of companies trading publicly, operated under a strategic partnership between S&P Dow Jones Indices and Ro ...
, to join companies tied to environmental, social and accountability goals.


Other indices

*IFIX: Real State Investment Funds measure the listed
REIT A real estate investment trust (REIT) is a company that owns, and in most cases operates, income-producing real estate. REITs own many types of commercial real estate, including office and apartment buildings, warehouses, hospitals, shopping ce ...
's return at BOVESPA. Unlike other indices, it can be composed of OTC equities. *BDRX: Unsponsored Brazilian Depositary Receipt Index reflects the valuation of those equities which are not freely distributed at the stock exchange but limited to qualified investors, as defined by Brazilian regulations.


See also

*
Índice Bovespa The Bovespa Index ( pt, Índice Bovespa), best known as Ibovespa is the benchmark index of about 92 stocks traded on the B3 (Brasil Bolsa Balcão), accounting for the majority of trading and market capitalization in the Brazilian stock market. It ...
(Bovespa Index) *
List of companies traded at Bovespa , more than 450 companies were listed on the Brazilian stock exchange B3, according to the exchange's website. The following is a list of the components of B3's main index Ibovespa , their ticker symbol, industry, and the location of their headq ...
*
Economy of São Paulo São Paulo is the one of the largest cities in the world economically, and is expected to be the 6th largest in 2025. According to data of Fecomercio/SP, its gross domestic product (GDP) in 2017 was R$699.28 billion ($B today). The biggest fi ...


References


External links


B3's Official Home Page (in English)

About BM&FBOVESPA


{{DEFAULTSORT:BmandF Bovespa Financial services companies established in 1890 Financial services companies of Brazil Companies listed on B3 (stock exchange) Companies based in São Paulo Stock exchanges in Brazil Commodity exchanges Futures exchanges 1890 establishments in Brazil Tourist attractions in São Paulo